During the past ten years, the microfinance industry has established itself as a dynamic and fast-growing segment of the region's financial markets. As a result, what once was a relatively obscure grassroots movement has become a topic of major importance in many national development strategies. In developing countries, the costs for supplying financial services for a Micro Finance Institution (MFI) are high in rural areas. Often, these costs cannot be adequately covered through interest charges because usury laws or traditions prevent charging high rate of interest to clients. Therefore, MFIs tend to reduce the quality and quantity of their services, which increases transaction costs for the clients. The article discuss several area specific collection models can be adopted in the MFI operational strategies to reduce transaction costs. Collection risks are to be considered while adopting suitable collection strategies and in optimum utilization of resources. The reduction in operational cost can be transferred to the clients by reducing the interest rate on loan products; thereby the financial services for poor households can contribute to the achievement of Millennium Development Goals.

PurposeThe purpose of this paper is to disseminate the success of enterprise development activities initiated by a voluntary organization working in Kanyakumari District of India.Design/methodology/approachThe paper was prepared in discussion with rural artisans and staff of voluntary organization.FindingsIt was found that the indigenous palm candy production gave better livelihood for the Nadar community whose prime occupation is harvesting of palm products. Even though the community was in the lowest ebb of the society, proper enterprise capacity building, value addition to palm product like palm candy, marketing and access to credit have paved way for the development of the community. The institutions promoted by Palmyrah Workers Development Society catered to the enterprise intervention of the community thereby increasing the income level of the families. Even though globalization is a threat for rural artisan products, the concept of green and fair trade is providing avenues for rural enterprise.Research limitations/implicationsThe study was restricted within a particular community and within a given geographical area.Practical implicationsEven though palm candy is having good market at international market, quality control and eco‐certification is a problem at field level.Originality/valueThe paper illustrates how a backward community has developed enterprise skills and achieved better livelihood options.

Purpose -Housing micro-finance is emerging globally as an important financial activity to help alleviate the housing needs of economically vulnerable people. Micro-finance institutions (MFIs) planning to include housing product must carefully assess whether they have the management and technical capacity to do so. The purpose of this paper is to give practical guidance to MFIs in adopting the housing programme, in addition to their existing line of micro-finance services. Design/methodology/approach -The paper gives practical guidance to MFIs adopting the housing programme in addition to the existing line of micro-finance services and inputs about any market study, profiling the customers, product design, pricing of the product, affordability of the clients, income assessment, loan assessment, operational procedures, risk coping mechanisms and technical backup guidance. Findings -The paper finds that MFIs should also ensure that housing micro-finance suits their strategy from institutional and financial perspectives. Originality/value -This paper provides valuable practical guidance to MFIs.

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